ROI is a performance metric you can use to evaluate the success of your digital marketing investment, letting you know whether you are effectively using your money. Each digital marketing channel has an estimated ROI which you should know to enable you to calculate your ROI appropriately.
It is also very easy to calculate your ROI.
You must subtract the initial money invested from your current revenue to get your net return. Then you divide by your initial digital marketing spend before multiplying by 100.
So, if you invest $4 and make a revenue of $20, your net return is $16.
Then, you divide $16 by your initial marketing spend, which was $4. This gives a total of 4, which you will multiply by 100 to give you 400 – meaning your ROI is 400% (4:1).
In digital marketing, an ROI of 5:1 is a success, but most marketers usually aim for higher. Also, remember that each marketing channel has a different ROI ratio that you can use as a scale –email marketing (36:1), PPC (2:1), and SEO (22:1).
Now that we understand the basics of digital marketing ROI, let’s look at some digital marketing channel statistics, shall we?
Key Digital Marketing ROI Statistics
Email Marketing ROI Statistics
Search Engine Optimization ROI Statistics
Content Marketing ROI Statistics
Pay-Per-Click Marketing ROI Statistics
Social Media Marketing ROI Statistics
Wrapping Up
The statistics discussed show that digital marketing strategies yield a high investment return.
So, if you do not have an active digital marketing strategy for your business, you should start now.
Besides, the most important step is understanding where your audience is coming from so you can actively face that digital marketing channel(s).
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